Real estate has long been a safe and profitable investment in Turkey. High demand in major cities and coastal regions provides landlords steady rental income. However, this income is not only a source of profit but also subject to tax. As of 2025, new regulations regarding rental income taxation in Turkey have come into effect. Therefore, investors must understand the tax system well to protect their earnings and comply with legal obligations.
Tax Obligations on Rental Income in Turkey
Residents of Turkey are required to pay taxes on all rental income, not only from Turkey but also from abroad. Non-residents or Turkish citizens living overseas only declare rental income generated in Turkey. Hence, rental income taxation in Turkey in 2025 depends on the taxpayer’s residency status.
Another important point is Turkey's agreements to prevent double taxation. These treaties ensure that the same rental income is not taxed both in Turkey and in the investor's home country. For instance, a Turkish investor living in Germany who earns rental income from a property in Istanbul pays tax in Turkey, and can offset this amount against their German tax obligations. This arrangement also clarifies how residency rules affect tax liability for foreign landlords.
2025 Rental Income Tax Rates and Exemptions in Turkey
Turkey uses a progressive tax system for rental income, meaning higher income levels are taxed at higher rates. The Turkish rental income tax brackets for 2025 are as follows:
0 – 158,000 TRY: 15%
158,001 – 330,000 TRY: 20%
330,001 – 800,000 TRY: 27%
800,001 – 4,300,000 TRY: 35%
4,300,001 TRY and above: 40%
These represent the latest rental income tax brackets in Turkey for 2025.
For residential rents, a key rental income exemption Turkey applies. Annual rental income of up to 47,000 TRY is exempt from tax. Therefore, landlords earning rental income from a single property below this threshold do not need to file a tax declaration. However, this exemption does not apply to commercial properties. As a result, distinguishing between real estate tax for landlords Turkey and commercial tax is essential.
Deductible Expenses and Tax Methods in Turkey
Another crucial topic for landlords is deductible expenses. Certain costs can reduce taxable rental income. Two methods exist:
Actual expense method: Allows deductions for mortgage interest, earthquake insurance premiums, maintenance fees, repairs, legal expenses related to tenants, and depreciation. This method answers the question: “Which deductible expenses can I claim on my Turkish property?”
Lump-sum deduction method: Automatically considers 15% of rental income as deductible, simplifying documentation. Investors using this method cannot switch to the actual expense method for at least two years.
Understanding the difference between the actual expense method and the lump-sum deduction in Turkey helps landlords choose the best approach depending on their expenditure. For more detailed guidance on tax on rental income Turkey, you can also refer to the rental tax guide: Turkey rental property tax guide.
Tax Rules for Foreign Property Owners in Turkey
Foreign landlords are subject to the same rates as Turkish residents. The key difference is whether the investor resides in Turkey. Non-residents declare only rental income generated in Turkey, while residents report worldwide income. Thus, rental income tax for foreigners in Turkey depends on residency status.
Double taxation treaties allow foreign investors to offset taxes paid in Turkey against their home country taxes, providing extra security for high-return investments.
How to File and Pay Rental Income Tax in Turkey
Understanding the filing process is critical. Landlords submit their rental income tax filing Turkey annually in March. The 2025 filing deadline was April 2, and this period has now passed. Investors should prepare for the next filing cycle and maintain organized documentation.
Step-by-step rental income tax process in Turkey:
Log into the Revenue Administration's Digital Tax Office.
The question of how to declare rental income in Turkey is addressed through a pre-filled online form.
Review income and expense details and make corrections if needed.
After approval, tax is paid in two installments, in April and July.
This process ensures transparency and ease for both Turkish citizens and foreign investors.
Avoiding Penalties on Rental Income Tax in Turkey
In recent years, the Revenue Administration has increased scrutiny on rental income. Listings, bank records, and tenant declarations are cross-checked. Errors or omissions may result in significant fines. Proper declaration of rental income in Turkey is essential to avoid additional interest and penalties.
Why Understanding Rental Income Tax Secures Property Investment in Turkey
Rental income is among the most attractive features of real estate investment. Its sustainability depends on correctly following the rental income tax guide Turkey. Investors—whether Turkish or foreign—can protect and optimize their earnings by choosing the right method and filing on time.
Tax is not a barrier, but rather a safeguard for long-term profitability. Therefore, property investor tax Turkey knowledge and compliance should be every investor’s priority.
